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Costs
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Author:  AroundTheClock [ Tue Jul 18, 2017 11:02 pm ]
Post subject:  Costs

I just wondered how many PH drivers know exactly how much per mile their vehicle actually costs to run? Call me tight, but I always know at any point in the tax year how much in total my business is costing per mile. I am often left bewildered when I find out how much some drivers will do an Airport for. I'm also astounded how low they value themselves. Always remember 'anyone can be a busy fool'. If you haven't got a clue then just post what you think it is!

Author:  Sussex [ Wed Jul 19, 2017 3:49 am ]
Post subject:  Re: Costs

Alluded to this on the other thread, I suspect less than a third of drivers actually know the true cost per mile to run a taxi/PH.

Without going into too much detail and keeping it very very basic, and with the caveat that there are a zillion variables, it's not a bad idea to start with the number the inland revenue use for volunteer non profit cars I.e. 45p a mile.

Now as we are only paid when we are puntered up (it's fair IMO to say 50% of the time we are empty), that then means the 45p should in fact be 90p a mile just to cover our basic running costs.

Now if top of that we also have to make a living. :shock:

Again very basic but the national minimum wage is £7.50 a hour, times 40 hours a week = £300, about £15,000 a year.

Let's say a driver does 30,000 miles a year, as 50% of them will be unpaid he will need to charge at least £1 a mile just to reach the minimum wage level, and of course on top of that they will have to put the 90p a mile running costs.

So to recap that's £1.90 a mile just to meet the national minimum wage rate.

Of course on top of that will be the extra cost of insurance, and radio rents which are often £5,000 plus for PH drivers and taxis on circuits.

Am I tempting anyone new to come and join the party?

Author:  jimbo [ Wed Jul 19, 2017 3:18 pm ]
Post subject:  Re: Costs

You can only report on previous years, your running costs.

How can you predict what will happen next year?

Breakdowns are unpredictable. Accidents are unpredictable. Ergo, running costs are unpredictable.

Author:  AroundTheClock [ Thu Jul 20, 2017 9:13 am ]
Post subject:  Re: Costs

Totally agree, but my point is that I guess 95% of PH drivers do not know their costs per mile. From experience I expect my costs to be 28p - 33p per mile over a year (average 35k miles). So for example(Airport, 180 miles round trip) when you pose the question to most drivers, How much do you charge? and any idea how much the job costs?, so often they say I charge £95.00 & £20 of Diesel!
In reality its probably cost them £60 in costs, £4 parking if picking up. So a profit of £35, the pleasure of sitting on the M1/M25, and if your lucky 4 or 5 hours time.
Operators that pay 40%-45% to their drivers do not comprehend that the job in reality is earning them nothing!

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